Swiss Franc Holds Ground Amid Weaker Inflation

The Swiss Franc (CHF) continued its strength in July following the release of domestic Producer and Import Prices data, which showed a 2.1% year-on-year decline.

This marks the third consecutive month of price drops, with the latest decline driven by lower petroleum-related costs.

Analysts at OCBC noted that near-term inflation risks remain limited, but acknowledged that the recent depreciation of the CHF may eventually lift imported inflation in the coming quarters.

The US Dollar (USD) struggled to gain ground amid shifting Federal Reserve rate expectations following softer inflation reports, with July's headline CPI edging down to 3.4% year-over-year and core CPI cooling to 2.5%.